bank rates

Highest CD Rates Roundup For July 26

Bringing you the very best CD rates from credit unions and local banks.Others are starting to take note that the best CD rates — especially on long-term certificates of deposit — have risen over the last month.

Of course, we have a new top offer on our CD Rates Leaderboard to prove the point that some banks are getting more aggressive in their offers.

But in the last couple of weeks, we’ve also seen a few media reports speculating on whether we’ve finally hit bottom on interest rates.

On July 19, The Wall Street Journal offered this take:

Some analysts believe the market has hit a turning point. “From now on, we will see a gradual and very mild increase in deposit rates” that will accelerate in the middle of next year, says Dan Geller, executive vice president of Market Rates Insight.

Long-term interest rates began climbing in May amid concern that the Federal Reserve could start winding down its massive bond-buying program later this year. But rates moved lower after Fed Chairman Ben Bernanke reiterated the Fed’s commitment to the program.

Earlier in the month, USA Today took a more sober view, cautioning that if we’ve hit bottom, the climb back up will be gradual — and perhaps a bit bumpy:

“All interest rates are headed higher over the next several years,” said Mark Zandi, chief economist for Moody’s Analytics.

“It won’t be a straight line up for interest rates, but they will be higher,” he said.

Savers might want to consider investing in short-term CDs, such as six-month or 1-year CDs, to take advantage of higher rates down the road, Zandi said.

Unfortunately, we haven’t seen any evidence that short-term CD rates are getting better. And while several banks — all with major online marketplaces — have begun offering nationally available 5-year rates at or above 2%, the average 60-month CD rate has fallen back to a record low.

So while the outlook is better, it’s still perhaps too soon to say the worst is definitely behind us.

This week we added two deals to our list of the highest CD rates from credit unions and local banks:

  • Lincoln Park Savings Bank (www.lincolnparksavings.com) in New Jersey pays 1.10% APY on 7-month CDs with a $5,000 minimum deposit. To buy these certificates of deposit, you have live or work in the communities the bank serves – primarily Essex, Morris and Passaic counties – and do so in person.
  • Visions Federal Credit Union (www.visionsfcu.org) in New York pays 2.17% APY on 60-month CDs with a $500 minimum deposit. This is a relationship rate that requires you to have other accounts with this credit union. Membership is open to residents of Rochester and Syracuse and surrounding communities.

We also wrote about a 9-month CD available to savers nationwide. That deal is set to expire at the end of July, so hop on fast if you’re interested. Seacoast Commerce Bank (www.sccombank.com) in California pays 1.10% APY with a $50,000 deposit. CDs are available for purchase through the mail.

We have just one rate cut to report. HomeBanc in Florida ended its 4-month CD special that had been paying 1.30% APY. We have removed the offer from our list.

You’ll find the top-paying deals clearly marked on our highest CD rates page, showing where they are available, with a quick link back to the original post, which includes more information on the institution and its requirements.

We’ll update this page weekly, so you’ll always know what great deals are out there from credit unions and local banks.

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